Remunerated accounts have become one of the most interesting options to protect our savings from inflation. The different banking entities offer their own conditions to opt for their contract and one of the most important aspects that we must assess is the period in which they pay the interest. We tell you the reasons.
The paid accounts have increased their prominence in recent months. As inflation has become an increasingly present problem for the majority of small savers, this has been one of the refuge products that a greater number of people have turned to seeking to make the money they have saved profitable without be exposed to the same level of risks that other much more profitable products offer us.
Currently, we have different entities that have incorporated this option into their catalog of products and services, each of them defining different conditions What we must take into account before making a decision. One of them is the time it takes to calculate interest. The most common thing is that our bank offers us monthly interest payments, but there are also options that pay interest daily and which are very interesting.
Daily interest and compound interest
The paid accounts They allow us to enjoy the benefits provided by the concept of compound interest. This term refers to the interest rate that is added to the initial capital and on which new interests are generated. That is, it has a multiplier effect, since the interest obtained from our savings generates new interest.
If we want to maximize our savings, in addition to the interest rate, we must also study the interest accrual period. The lower the frequency, the more benefits they can produce for us for the reason mentioned previously. At the moment in which the interests become be part of our balancehave an impact on the calculation of the following interests.
The calculation is important, not the income
We must differentiate between the period in which they calculate the interest and the exact moment in which we see them reflected in our account. The most important thing is that their calculation is carried out with a shorter frequency, regardless of the fact that these interests are not reflected in our bank account until the specific period ends.
If we choose an annual accrual, During the 12 months that make up a calendar year, the capital held in an account It does not generate new interests. If we opt for a calculation every six months, the accumulated interest will be higher with the same interest rate, although interest will only be generated twice a year. As we reduce this frequency, and as long as we do not touch the capital, we will obtain more benefits.
Now, all that remains is to know what are the different options that the companies offer us. banking entities to identify which are those that can generate the greatest benefit. Also remember to periodically inform yourself about the news in this sector, given the dynamism it has acquired in recent years, as a consequence of the dynamism that neobanks such as Revolut or N26 have been monopolizing.
